Suppose the market demand curve for tacos can be expressed as Q^D = 120 - 3P - Pb,where Q^D is the quantity of tacos demanded,P is the price of a taco,and Pb is the price of a burrito.What is the relationship between burritos and tacos,from the point of view of consumers? A) They are independent. B) They are complements. C) They are substitutes. D) Not enough information to answer the question.

Question

Quizplus · Accepted Answer

The negative coefficient of Pb suggests that as the price of burritos increases, the demand for tacos decreases. This indicates that burritos and tacos are complements from the point of view of consumers as they are usually consumed together.

Suppose the Market Demand Curve for Tacos Can Be Expressed